Foreign direct investments (FDI) in January 2006 yielded a net inflow of US$262 million, up by 1.9 percent from the year-ago level of US$257 million. The surplus during the first month of the year was attributed primarily to the growth in the “other capital” account (essentially representing inter-company accounts between investee companies and their corresponding foreign direct investors) which reversed to a net inflow amounting to US$197 million.
Net equity capital placements, while lower than the year-ago level, remained in surplus at US$50 million during the period. Said capital came mainly from the U.S. and Japan and were infused largely to the manufacturing (chemical, metal, health and sanitary products) and real estate sectors.
Looking forward, net inflows from FDI are expected to reach US$1.6 billion in 2006 due to improving investor confidence, buoyed by the better fiscal position of the national government and the strong macroeconomic fundamentals.